Agenda

from all its customers based on their actual bills incurred between April |, 2021 and the final
effective date of the Order.

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December 17, 2020. The overall rate increase is subject to the normal regulatory filing process
with the NHPUC, as followed for all prior rate case filings, and as such, the final permanent rate
increase granted will be effective retroactive back to the filing date.

On November 9, 2021, the NHPUC issued Order No. 26,544 approving a permanent rate
increase of 5.45%, becoming effective with services rendered back to December 17, 2020.

Finaneing

Capital Expenditures

Capital expenditures in the fourth quarter of 2021 were $2.2 million compared to $4.9 million in
the fourth quarter of 2020. For the year 2021, capital expenditures were $8.7 million as
compared to $10 7 million in 2620

The major expenditures for 2021 were as follows:

Kessler Farm Tank Replacement $3.967,000
Coburn Woeds Main Replacements $653,000
Merrimack River Pumping Station $270,000
Locke Lake Surface Water ‘I'reatment $253,000

Rate Cases

Notes to Balance Sheet

LIABILITIES

Unaudited Cash Flow Statement

Cash Plaw on a GAAP basis forthe fourth quarter of 2021 as compared to the fourth quarter of
2020, and the year-to-date 2021 versus 2020, are as follows:

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that will reinstate the exemption from taxation of CIAC, for NHBPT taxes, if and when
passed. Due to these two significant items, the year-to-date results reflect a tax provision of
approximately 4.9% of pre-tax income for 2021, compared to the statutory lax rate expense
of 27.08%.

Earnings Before Interest, Taxes, Depreciation and Amortization increased in the fourth
quarter from $4.0 million in 2020 to $5.4 million in 2021, or 35.0%, due to an increase in
revenues as discussed previously, over-and-above any operating expense increases.

Consolidated operating expenses increased by £0.3 million for the fourth quarter of 2021,
over the same quarter in 2020, The increase is related to a rise in direct operating costs
associated with the rate increases in fuel, power and purification costs, The Company has
also recognized increases in its employee benefit costs, including but not limited to,
employee pension costs and healthcare premiums.

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Third, the Mayor and Board of Aldermen unanimously agreed to establish a corporate
governance system for the purposes of managing Pennichuck Corporation. This corporate
govemance system relies upon well-established principles of corporate law, and is established
pursuant to Pennichuck Corporation's Articles of Incorporation and By-Laws, as adopted by the
City and the Company at the time of the acquisition pursuant to the Merger Agreement